Domestic equity benchmarks extended gains led by buying in blue-chip stocks like Reliance Industries, ICICI Bank, NTPC, State Bank of India, Bharti Airtel and Power Grid. The S&P BSE Sensex rose as much as 415 points or 1.13 per cent to hit intraday high of 37,086 and the NSE Nifty 50 Index climbed 1.2 per cent or 135 points to 11,170.75. Meanwhile, other Asian markets inched up Chinese markets rebounded on hopes of more policy support for the slowing economy, but surprisingly weak US. employment data raised doubts about the strength of the global economy and limited gains.
Back home, foreign investors have been buying shares in Indian markets. Foreign portfolio investors have so far this month invested Rs 5,621 crore in equity markets, according to data compiled by National Securities Depository limited.
"Global funds are flowing towards India and that's why Indian markets are rising and they will continue to do so in the near term," AK Prabhakar, head of research at IDBI Capital told NDTV over phone.
Eighteen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Telecom Index's 3.7 per cent gain. Auto, consumer durables, oil & gas, energy, power and metal gauges also climbed between 2 and 3 per cent. On the flipside, S&P BSE Information Technology Index was the lone loser; the index dropped tracking gains in rupee which appreciated against the dollar.
Hindustan Petroleum was top gainer in the Nifty 50 basket of shares, the stock rose 6 per cent to Rs 264.90. Bharat Petroleum, Bharti Airtel, Power Grid, Indian Oil, Coal India, Bharti Infratel and NTPC were also among the gainers, up between 3.5 and 5.5 per cent. On the other hand, Indusind Bank, Tech Mahindra, TCS and HCL Technologies were among the losers.
The overall market breadth was positive as 1,706 shares were advancing while 788 were declining on the BSE.